COA files fresh P360-M fraud cases over DPWH works

The Commission on Audit (COA) has filed four new Fraud Audit Reports (FARs) worth a total of P360 million with the Independent Commission for Infrastructure (ICI), covering irregular flood control projects under the Department of Public Works and Highways (DPWH) Bulacan 1st District Engineering Office (DEO).

In a report on Friday, the audit body said the findings involve projects by M3 Konstract Corporation, SYMS Construction and Trading, and Amethyst Horizon Builders and General Contractor and Development Corp.

For the P96.5-million project of M3 Konstract in Barangay San Roque, Baliuag, COA said DPWH representatives “pinpointed COA to a site different from the approved project location” and “did not give any explanation for the change.”

The inspected structure had “several defects and cracks” and belonged to another project.

COA added that the DPWH-Bulacan 1st DEO “failed to submit a significant number of critical supporting documents,” including conflicting details on contract cost, variation orders, and the name of the contractor.

Those found liable include District Engineer Henry C. Alcantara, Assistant District Engineer Brice Ericson D. Hernandez, and other DPWH officials, along with officers and board members of M3 Konstract Corporation.

In another case, SYMS Construction’s P92.67-million project in Barangay Manatal, Pandi, had no structure at the approved site.

“No flood control structure was seen, nor any indication that civil and other related works were undertaken,” COA said. A Notice of Disallowance was earlier issued after full payment was made despite no visible work.

A second SYMS project worth P74.1 million along the Balagtas River in Barangay San Juan was also declared a “ghost project.”

COA said the site “utterly failed to meet the project specifications,” with “unsuitable materials” and exposed steel bars. The project was still listed as ongoing in the DPWH’s database even after full payment.

The fourth project, implemented by Amethyst Horizon Builders in Barangay Dalig, Balagtas, and worth P96.5 million, was also flagged. COA said the DPWH “offered no justification why the location was changed” and again “failed to provide any necessary and critical supporting documents.”

The four new reports form part of 21 FARs that COA has transmitted to various agencies — nine earlier sent to the Office of the Ombudsman and eight to the ICI.